Federal law prohibits lenders from discriminating against borrowers based on age, disability and the form of income used to qualify for a loan. This protection helps elderly and disabled borrowers who live off of social security benefits buy a house. As long as your credit and property meet the lender's guidelines, and you receive enough benefits to cover the housing payment, you can get a loan.

What Lenders Expect

Lenders consider the amount of income you receive and the amount of debt you carry before approving your loan. They compare the two factors using calculations known as a debt-to-income ratios. The lender compares your total housing payment, including mortgage principal, interest, property taxes, homeowners insurance and homeowners association dues, to your monthly social security income. This is known as your housing, or "front-end" DTI. It also compares your monthly recurring debt payments, including housing, to your income. This is known as your total-expense, or "back-end" DTI. Lenders generally want a front-end DTI in the low-30-percent range and a back-end DTI in the mid-30 to mid-40-percent range.

The Price is Right

You likely have a tight and fixed income when living off of social security. Find homes in moderate to low-income price ranges. This may require you to seek housing options developed for low-income buyers and properties that qualify for government or non-profit buyer-assistance, such as down payment grants and loans, below-market rates and other discounts. Certain manufactured housing also is an affordable option for homebuyers with a low price point. Check with your city, county and state for homebuyer assistance programs -- for example, the California Housing Finance Agency and the City and County of San Francisco Mayor's Office of Housing and Community Development.

More Bang for Your Buck

Use a lender who can "gross up" your social security income. Fannie Mae, Freddie Mac, the Federal Housing Administration and the Department of Veterans Affairs have guidelines which allow lenders to base DTI calculations off of a higher income amount. It puts the social security income on equal footing with taxable income. Grossed-up income is the taxable equivalent of gross, employment-based income that is subject to taxes. To gross up payments, lenders usually use a factor of 1.25, or 125 percent of the benefit amount. As such, a monthly $1,000 social security check becomes $1,250 for qualifying purposes.

Challenges You May Face

Lenders require sufficient income and acceptable DTI ratios, regardless of age or social security benefits. Borrowers relying solely on social security income may have trouble qualifying for a high-enough loan amount, especially if they carry other recurring debts. A two-person household in which both borrowers draw social security also can have a problem of affordability down the road. For example, if one spouse dies, and the widow is entitled to only a percentage of the deceased spouse's benefits, the remaining spouse may have trouble keeping up with payments. In general, however, a widow of retirement age -- as determined by SSA guidelines -- is entitled to 100-percent of the deceased spouse's benefits.

About the Author

K.C. Hernandez has covered real estate topics since 2009. She is a licensed real estate salesperson in San Diego since 2004. Her articles have appeared in community newspapers but her work is mostly online. Hernandez has a Bachelor of Arts in English from UCLA and works as the real estate expert for Demand Media Studios.

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C., Karina. "How to Buy a House Living Off Social Security." Home Guides | SF Gate, http://homeguides.sfgate.com/buy-house-living-off-social-security-96492.html. 17 June 2017.

C., Karina. (2017, June 17). How to Buy a House Living Off Social Security. Home Guides | SF Gate. Retrieved from http://homeguides.sfgate.com/buy-house-living-off-social-security-96492.html

C., Karina. "How to Buy a House Living Off Social Security" last modified June 17, 2017. http://homeguides.sfgate.com/buy-house-living-off-social-security-96492.html

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